Premium pricing positions a product at the top end of the market to attract customers who associate higher prices with higher quality. It relies on strong brand, differentiated features, and excellent customer experience to justify the price premium.

Example: A SaaS security platform prices its enterprise tier at $50,000/year when competitors charge $20,000. The premium pricing is justified by its superior compliance certifications, 24/7 dedicated support, and significantly lower false positive rate, attracting risk-averse enterprise buyers.